Zee Entertainment rises on brokerage upgrades, ad and viewership growth

The stock may see a further re-rating if the firm sticks to its pledge on free cash flow and corporate governance

The Zee Entertainment Enterprises (ZEEL) stock has gained over 13 per cent after brokerages upgraded it on the back of improved disclosures, reconstitution of the board, and management commentary on free cash-flow generation. Besides, an expected recovery in advertising growth from the December quarter onwards and improving viewership are perceived as positive triggers by the Street. Analysts at JPMorgan believe the stock, which has dropped by half over the past year, can be re-rated significantly if the management delivers on its commitments. 

In addition to the upgrades, a favourable judgment by the Bombay High Court on a YES Bank petition seeking